How to reduce real estate prices?
Faced with that situation, the most proposed and talked about solution is that real estate businesses need to reduce selling prices.
However, according to VARS, in order to restructure the segment and lower product prices, there needs to be “joining hands and contributing”, unifying the viewpoints, implementation methods, and coordination of many subjects. components, from State management agencies to businesses and banks.
On the part of State management agencies, first of all, it is necessary to study plans to shorten investment and construction administrative processes and procedures. Consider options to support businesses in calculating land use fees and site clearance. Currently, these are two items that account for a lot of the investor’s costs, directly affecting the price of real estate.
At the same time, it is necessary to take strict measures to deal with all acts of “causing difficulties” for businesses during the investment and project development process, to avoid incurring “lubrication costs”, which are also invisible. added to product cost.
The State Bank needs to research and develop a credit program with preferential interest rates specifically for businesses investing and developing affordable housing and home buyers. There needs to be specific and clear mechanisms and policies to support investors if they want to restructure projects from high-end to affordable, or social housing.
For real estate businesses, it is necessary to proactively review the portfolio of investment projects. Sell part or all of projects that are not suitable for current resources. Proactively restructure debt and plan cash flow. Concentrate capital on projects that are legally guaranteed, have feasible loan plans, can be completed early, and are easy to liquidate.
Reducing profit expectations, even accepting selling at a loss, using profits from previous years to maintain operations are also ways businesses can apply. For new projects in the research phase, proactively orient to the affordable price segment to ensure absorption when bringing products to market.
In addition, real estate businesses need to continuously innovate, research, and apply technological achievements to improve management capacity, control risks, and minimize costs.